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The 5 Best Saving Plans to Explore in 2022

By: Eastern Eye Staff

Whether it is to meet your financial goals or to meet necessary future expenditures, savings are the stepping-stone of a comfortable and financially sound future for you and your family.  However, to maintain their savings, many people choose to keep their money saved in their bank accounts and miss the high returns other saving mediums could have provided them.

Just so you know, when it comes to increasing your savings, you don’t have to only rely on minimizing your expenditure. Fortunately, there are some best saving plans that one can invest in to increase their savings.  The one important benefit of these saving plans is that they offer you interest. If you continue to invest periodically, you can generate huge returns with the power of compound interest.

Additionally, these saving schemes come with tax benefits, and can tremendously aid your retirement life given that you choose the best saving plans.

So, if increasing your savings is your priority, these are the best saving plans you should know about.

The X Best Saving Plans to Explore in 2022

  1. National Savings Certificate

National Savings Certificate is one of the best saving plans initiated by the Indian Government. It is a fixed income saving plan that is most suitable for small-medium income groups. As the scheme comes with tax benefits, investors can increase their savings while saving taxes. The scheme is also suitable for investors who have a lower risk appetite. One can buy a National Savings Certificate from a post office near them. Anyone can buy NSC in any quantity, except HUF (Hindu Undivided Families and Non-Resident Indians).

The certificate works just like an investment instrument where you buy a number of NSCs units at a unit price, and after a period of time, you get an interest on the investment; the interest that is calculated annually.  The current interest rate for a five-year scheme is 7.9%, while for a ten-year term, it is 8,8%.

  1. Recurring Deposits

Recurring Deposits is one of the best saving plans introduced by banking and finance institutions. The saving scheme allows periodic deposits by the bank account holders for a pre-determined term. These deposits are subject to interest rates that keep fluctuating but can give you higher returns upon maturity. Recurring deposits do not allow withdrawal, but in some instances, they do; given that you pay some penalty. One can choose to invest in the saving scheme through their bank or post office. Post office deposits come with a fixed interest rate of 8.6%, with a minimum deposit of INR 10.

As the savings scheme demands regular deposits, it is best suited for individuals with a steady income. Anyone with a bank account or post office account is eligible to participate in the savings scheme.

  1. Max Life Savings Advantage Plan

You can also rely on private saving and investment options in India formulated by finance institutions, such as Max Life.  Max Life Savings Advantage Plan helps you build a corpus against systematic saving habits.  The savings plan works by regular payment of premiums that are determined by the policy you have chosen. The plan also gives the plan holder the luxury to choose the term of premium payment and policy.

This is the best saving plan that promises guaranteed additions which are equal to 5.5% of the sum assured at maturity for the first five years of the policy term, and a 110% guaranteed sum assured upon maturity with accrued guaranteed additions and bonuses. Additionally, the plan also acts as insurance, given that it comes with a death benefit.

  1. Senior Citizens’ Saving Scheme

As the name suggests, the Senior Citizens’ Saving Scheme is a government designed saving plan for senior citizens above the age of 60 in India. The saving scheme allows regular income backed with tax benefits against a lump-sum or joint payment. With an interest rate of 7.4%, the savings scheme is apt for senior citizens who desire a risk-less steady income after retirement. Even though the savings scheme enjoys the tax benefit feature, the accumulated interest exceeding INR 10,000 annually, is subject to a TDS deduction.

  1. Sukanya Samriddhi Yojana

In order to ensure financial stability for a girl child, the Sukanya Samridhhi Yojana (SSY) was launched by the Indian Ministry of finance. When compared to other schemes, this particular scheme is one of the best saving plans that offer a higher rate of interest, i.e., 8.1 %. One can invest in the saving scheme by opening an account in a bank or post office.

The savings scheme comes with a minimum investment of INR 1000, and a maximum of 1.5 lakhs (in a financial year for the latter).  The maturity period of the savings scheme is 21 years. The account holder must contribute to the scheme for 14 years to claim the amount at maturity.

 

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